No Tax on Tips Calculator for Montana (2026)

Calculate how much Montana workers save now that tips are exempt from federal income tax under the OBBBA.

Minimum Wage$10.55/hr
Tipped Min. Wage$10.55/hr
State Income Tax5.9%

Your Information

Your base pay per hour
Your average tip earnings per hour worked

Your Annual Tax Savings in Montana

$3,789
per year in federal income tax on tips
Annual Tip Income
$33,250
Federal Tax Saved on Tips
$3,789
Your Marginal Federal Rate
12.0%
FICA Still Owed on Tips
$2,544
Annual Base Pay
$18,463
Total Annual Income
$51,713
Montana has a state income tax rate of 5.9%. State tax treatment of tips may vary — check your state's rules.

Tips Tax Exemption in Montana

Under the One Big Beautiful Bill Act (OBBBA), workers in Montana who earn tips can deduct 100% of their tip income from federal income tax for tax years 2025 through 2028.

Montana Minimum Wage for Tipped Workers

The minimum wage in Montana is $10.55/hour. Montana does not allow a lower tipped minimum wage — all workers receive the full minimum wage regardless of tip income.

Top Tipped Industries in Montana

  • Restaurant servers
  • Bartenders
  • Ski resort staff
  • Fishing guides

State Income Tax Applies

Montana has a state income tax rate of 5.9%. While the OBBBA exempts tips from federal income tax, Montana may still tax tip income at the state level. Check with a local tax professional for details.

How the No Tax on Tips Law Works

What Qualifies

  • Cash tips received directly from customers
  • Credit/debit card tips
  • Tips from tip pools or tip sharing
  • Service charges distributed as tips

What Doesn't Change

  • FICA taxes still apply: You still pay 6.2% Social Security + 1.45% Medicare on tip income
  • Tips must still be reported: Report all tips to your employer and on your tax return
  • Income limit: The exemption applies to workers earning less than $160,000 per year

Federal Calculators

Compare with the federal-level tools: Tip Tax Savings (Federal) | Overtime Tax Savings (Federal)

Calculate Tips Tax Savings for Other States

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming